Welsh Lib Dems commit to creating a “Debt bonfire” to help the most vulnerable

The Welsh Liberal Democrats have announced radical plans to create a so called “Debt Bonfire” which would see the Welsh Government purchase bad debt and cancel it for the most vulnerable in society. 

The plans would see a specific and limited pot of funding made available so that we could eradicate debt that has already been sold on to debt collection agencies, of up to £200,000 of the poorest people over the Senedd term, at a fraction of the cost.

The plans come as research from the Joseph Rowntree Foundation reveals Wales is disproportionately affected by debt. Debt in Wales is overrepresented when compared to the UK as a whole (8% in 2018, compared to 6% for the UK).

The pot of funding would be part of the wider Liberal Democrat plan to put recovery first with a greener, cleaner, more caring society.

Commenting Welsh Liberal Democrat Leader Jane Dodds said:

“As we come out of the worst of the Coronavirus pandemic one thing is clear, the pandemic exposed rife inequalities in our society. Creating a ‘Debt Bonfire’ would help so many residents in Wales who need support at the fraction of a cost.

“We know our country is disproportionately affected by debt compared to the rest of the UK, that’s why we’d use this funding to free people from the economic insecurity that is faced with debt collecting. This is part of our plan to create a fairer, more caring society that puts recovery first.”